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source:Official website of the Hong Kong Special Administrative Region Government
On June 26, 2025, the Hong Kong Special Administrative Region Government issued the “Hong Kong Digital Asset Development Policy Declaration 2.0” (“Policy Declaration 2.0”), reiterating the government’s commitment to building Hong Kong into a global innovation center in the field of digital assets.The new policy declaration is based on the measures proposed in the first policy declaration in October 2022.
The Policy Declaration 2.0 clarifies the government’s vision of building a trustworthy and innovative digital asset ecosystem, with risk management and protection of investors first, while also committed to bringing substantial benefits to the real economy and financial markets.A new policy declaration proposes the “LEAP” framework, highlights include:
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Legal and regulatory streamlining: The government is building a unified and comprehensive regulatory framework for digital asset service providers, covering digital asset trading platforms, stablecoin issuers, digital asset trading service providers and digital asset custody service providers.Among them, the Securities and Futures Commission (CSRC) will serve as the main regulatory body for the future licensing mechanism of digital asset trading service providers and digital asset custody service providers.Meanwhile, the Financial Affairs and Treasury Bureau (Treasury Bureau) and the Hong Kong Monetary Authority will lead a comprehensive legal review to promote the tokenization of real-world assets and financial instruments.The review will comprehensively examine the various processes of tokenized bond issuance and transactions, including but not limited to settlement, registration and record requirements.
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Expanding the suite of tokenised products:The government will routinely issue tokenized government bonds and provide incentives for real-world asset tokenization (including by clarifying stamp duty arrangements applicable to tokenized exchange-traded funds) to improve liquidity and popularity.On this basis, the government is happy to see relevant tokenized exchange-traded funds conduct secondary market transactions through licensed digital asset trading platforms or other platforms in the future.The government will also promote the tokenization of a wider range of assets and financial instruments, demonstrating the diversified applications of this technology in different sectors, including precious metals (such as gold), non-ferrous metals and renewable energy (such as solar panels).
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Advancing use cases and cross-sectoral collaboration:The stablecoin issuer issuing mechanism will be implemented on August 1, which will help promote the development of substantive application scenarios.At the same time, the government is committed to strengthening cooperation between regulators, law enforcement agencies and technology providers to develop digital asset infrastructure.To express support and take the lead, the government welcomes market participants to make suggestions on how the government can experiment and use licensed stablecoins.In addition, Cyberport will also launch a pilot funding program for blockchain and digital assets to provide funding for application projects with future application potential, iconic and market influence.
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People and partnership development: The government is committed to working with the industry and academia to promote talent development, and positioning Hong Kong as an outstanding center for sharing digital assets knowledge and promoting international cooperation, including joint research programs and global regulatory collaboration.The government will build a sustainable talent pool by cultivating a new generation of entrepreneurs, researchers and technical experts.
The following is the full text of the Policy Declaration 2.0:
Hong Kong Digital Asset Development Policy Declaration 2.0
Vision: Building a trustworthy and committed digital asset center to promote innovation
The Hong Kong Special Administrative Region Government firmly builds Hong Kong into the world’s leading digital asset center – a market that allows innovation to flourish in a controlled environment of risk and brings substantial benefits to the real economy and financial markets.
The Hong Kong Digital Asset Development Policy Declaration 2.0 (Policy Declaration 2.0) issued by the Financial Affairs and Treasury Bureau (“Treasury Bureau”) is a positive response from Hong Kong to the continued evolution of the global digital asset market.Adhering to the principle of “same business, same risks, same rules”, the Policy Declaration 2.0 aims to outline forward-looking strategies, empower the industry to develop, promote inclusive finance, cultivate talents, and at the same time ensure investors and maintain financial security, and consolidate Hong Kong’s leading position as an international financial center.
“LEAP”: Towards the formation of a trustworthy, sustainable and deeply integrated into the real economy digital asset ecosystem
Based on the measures proposed in the first Policy Declaration in October 2022, including the establishment of prudent regulation, the launch of innovative products such as digital asset exchange trading funds (“ETFs”), expanding investor channels by allowing retail participation, and launching pilot projects such as green bond tokenization. Hong Kong is now ready to move towards (“LEAP”) to form a trustworthy, sustainable and deeply integrated into the real economy.The Securities and Futures Commission (“SFC”) earlier announced the “ASPIRe” roadmap, aiming to lead Hong Kong’s digital asset ecosystem to the future in a changing environment, to implement a series of measures such as adaptive compliance and product frameworks (such as derivatives trading) to balance investor protection and market competitiveness.The Policy Declaration 2.0 outlines the next stage of development, focusing on improving the liquidity of digital asset transactions and promoting more diversified supply of digital asset products, to strengthen Hong Kong’s position as a global digital asset center.Governments and regulatory agencies also welcome high-quality digital asset service providers from around the world to participate in the market to promote liquidity and healthy and orderly competition.
In order to achieve this vision and goal and to build a future-oriented digital asset ecosystem that is deeply integrated with the real economy and financial markets, we have proposed a series of strategic policy directions and will implement corresponding measures.In formulating policy directions and initiatives, we strive to ensure that they are not limited by current technology and ensure that they can adapt to the future development of digital assets while integrating into the real economy and financial systems for sustainable growth.These initiatives are based on “LEAP” as the framework, namely: (“L” egal and regulatory streamlining) optimizing laws and regulations, (“E” expanding the suite of tokenised products, (“A” dvancing use cases and cross-sectoral collaboration, and (“P” eople and partnership development) talent and partner development, to build a trustworthy, innovative and dynamic digital asset ecosystem, strengthen Hong Kong’s leading position in the global financial landscape.
(“L”egal and regulatory streamlining) Optimize legal and regulatory
– (a) a unified and comprehensive regulatory framework;
– (b) Tokenization legal and regulatory review;
(“E” expanding the suite of tokenised products) Expand the variety of tokenized products
– (c) Tokenization and regularization of government bond issuance;
– (d) Provide incentives for the tokenization of real-world assets and financial assets;
(“A” dvancing use cases and cross-sectoral collaboration) Promote application scenarios and cross-sectoral cooperation
– (e) Support stablecoins and other tokenization projects, including exploring the use of stablecoins as payment tools;
– (f) Promote cooperation between regulators, law enforcement agencies and technology providers;
(“P”eople and partnership development) Talent and partner development
– (g) Work with market participants and universities to promote talent development; and
– (h) Positioning Hong Kong as a center of excellence in knowledge sharing and promoting cooperation with other jurisdictions
(“L”egal and regulatory streamlining) Optimize legal and regulatory
(a) A unified and comprehensive regulatory framework
Based on the progress since 2022, the government will continue to cooperate with regulators and industry stakeholders to develop a comprehensive legal and regulatory framework to regulate digital assets and ensure the sustainable and responsible development of Hong Kong’s digital asset ecosystem.This system covers digital asset exchanges, stablecoin issuers, digital asset trading service providers and digital asset custody service providers, and focuses on investor and consumer protection.The main measure of the next step is to conduct public consultation on the licensing mechanism of digital asset trading service providers and digital asset custody service providers to meet investors’ needs in finding high-liquidity, bulk transactions and secure custody assets.The government recommends that the CSRC be the main regulatory body of digital asset trading service providers, be responsible for licensing and registration matters, formulate standards, optimize regulatory processes, and reduce potential regulatory arbitrage under different digital asset regulatory frameworks.The Hong Kong Monetary Authority (“HKMA”) will serve as the front-line regulator of banks to supervise their digital asset trading activities.
Similarly, the SFC will serve as the main regulator for digital asset custody services providers, responsible for licensing and registration, and setting standards, while the HKMA will serve as the front-line regulator for banks, overseeing its digital asset custody activities.
This unified and comprehensive regulatory arrangement will enhance market credibility, promote broader digital asset activities and large-scale transactions, and provide clear guidance to market participants.This arrangement will also support effective risk management and liquidity, ensuring a balanced ecosystem to promote market innovation and protect investors.Regular inspections and close communication with stakeholders will be conducted to ensure that the framework can adapt to technology and market development.
At the same time, Hong Kong will continue to implement international standards related to digital assets, including the International Securities Commission’s “Crypto and Digital Asset Market Policy Recommendations”, the Financial Stability Council’s “Global Regulatory Framework for Crypto Asset Activities”, the Basel Banking Regulatory Commission’s “Prudent Methods for Risk Assets Taking Understanding”, and the Organization for Economic Cooperation and Development’s “Crypto Asset Reporting Framework” to promote tax transparency.
(b) Tokenization Law and Supervision Review
The tokenization of real-world assets and financial instruments provides opportunities for the integration of new technologies and traditional finance, which can promote innovation in economic activities and financial market structures, thereby improving efficiency, reducing costs, enhancing transparency and promoting investor participation.To fully realize these potentials, a clear, clear and convenient legal and regulatory system is essential.The Treasury Bureau and the HKMA will take the lead in reviewing relevant legal and regulatory frameworks, referring to international experience and practice, to promote the further application of tokenization in Hong Kong.The initial review will focus on the bond market that has passed the proof of concept stage, and it is also expected to provide a reference for the tokenization of other real-world assets and financial instruments.WillA comprehensive review of the issuance and trading procedures of tokenized bonds, including but not limited to settlement, registration and record requirements.During the review process, the government will work with legal experts and industry stakeholders to ensure that the review results and related improvement suggestions are practical and can meet future development needs, and to build Hong Kong to become a pioneer in this innovation field.
(“E” expanding the suite of tokenised products) Expand the variety of tokenized products
(c) Tokenization Government bond issuance regularization
The government has issued two tokenized green bonds (total amount of approximately HK$6.8 billion) to prospectively demonstrate the benefits of tokenization solutions.On this basis,The government will routinely issue tokenized government bonds, and will explore different currencies and yearly arrangements, as well as other innovative options.The government expects to provide the market with stable and high-quality digital bonds through this move, further expanding accessibility and attracting a wider investor community.In order to further leverage the advantages of tokenization, the Treasury Bureau and the HKMA will continue to communicate with industry experts to understand opinions on different aspects of the market, including the inclusion of digital currencies to improve transaction efficiency, secondary market transaction application scenarios, and further expand investors’ participation in the local bond market.The government aims to establish a global benchmark by leading the issuance of tokenized bonds and regularizing them, strengthen market confidence in the technology, while encouraging the public and private sectors to adopt it.
(d) Provide incentives for the tokenization of real-world assets and financial assets
The tokenization of real-world asset and financial market tools can improve the efficiency, accessibility and potential liquidity of the Hong Kong market.Through the Ensemble project of the HKMA (which is the main partner of the SFC and jointly led the asset management industry with the HKMA), innovative application scenarios are actively encouraged, including tokenized traditional financial products (such as money market funds and other funds) and earnings flows of real-world assets (such as electric vehicle charging stations).The HKMA is exploring the establishment of Ensemble infrastructure to facilitate settlement of tokenized interbank deposits to simplify processes and improve liquidity.
The London Metal Exchange (LME) has included Hong Kong as a licensed delivery location within its global warehouse network and has approved warehouse operators in Hong Kong to store metals registered on the London Metal Exchange.In order to further develop the commodity trading ecosystem, the government encourages the market to use tokenization and physical asset tracking technologies in warehousing plans.Token creation technology can be used as an identification tag for global warehouses, assisting in tracking metal assets and their sustainability and other related data, and promoting Hong Kong’s further integration into the global warehouse network.
The government will increase efforts to expand tokenization solutions, promote the tokenization of a wider range of assets and financial instruments, and demonstrate the diversified applications of this technology in different sectors, including precious metals (such as gold), non-ferrous metals and renewable energy (such as solar panels).
Currently, all exchange-traded funds (ETFs) listed on the Stock Exchange of Hong Kong are exempt from stamp duty upon transfer.To promote the development of the tokenized market, the government will clarify that these stamp duty exemptions also apply to tokenized ETFs..On the basis of this exemption, the government welcomes market participants to explore the advantages of tokenizing ETFs, such as money market ETFs, including the introduction of them to secondary market transactions on licensed digital asset trading platforms or other platforms.Looking ahead, the government will take an open attitude, consider factors such as fiscal impact and market development, and examine other tax arrangements for funds approved by the China Securities Regulatory Commission to transfer after tokenization.
The government will submit legislative recommendations to include specified digital assets in eligible transactions that are exempt from profit taxes by funds offered in private form and family investment control instruments.If the proposal is approved by the Legislative Council, the tax exemption will take effect from the 2025/2026 tax year.
(“A” dvancing use cases and cross-sectoral collaboration) Promote application scenarios and cross-sectoral cooperation
(e) Support stablecoins and other tokenization projects, including exploring the use of stablecoins as payment tools
Stablecoins provide a cost-effective alternative outside traditional systems, with the potential to innovate payments, supply chain management and capital market activities.The government will implement a stablecoin issuer regulatory system starting from August 1, 2025.This system sets proper requirements for reserve asset management, stability mechanism, redemption process and prudent risk management, and is the cornerstone of realizing the above vision.These regulatory requirements help ensure the stability and credibility of stablecoin issuance and improve its reliability in local and international use.Many companies involved in cross-border trade and settlement businesses have expressed strong interest in using stablecoins to reduce costs and speed up transaction processes.In order to fully utilize the potential of stablecoins, the government and regulatory agencies will provide a favorable market environment and necessary regulatory guidance to promote the research and implementation of Hong Kong licensed stablecoin issuers to different application scenarios to solve the substantial pain points in economic activities.To show government support and take the lead, market participants are welcome to make suggestions on how the government can experiment and use licensed stablecoins, such as to improve the efficiency of government payments.
(f) Promote cooperation between regulators, law enforcement agencies and technology providers
As a digital technology incubator in Hong Kong, Cyberport has been strongly supporting Hong Kong’s tokenization projects and has provided a booming environment for start-ups to explore innovative fintech solutions through cooperation with the HKMA on the Ensemble project.To further support the development of tokenization projects, Cyberport will cooperate with relevant digital asset industry stakeholders to use its incubation ecosystem to provide support, including business matching opportunities, technical support, industry expert guidance and participation in accelerator programs related to digital assets and Web3.Startups and companies working in tokenized solutions will benefit from dedicated resources that allow them to experiment with innovative ideas and commercialize them.Cyberport will also launch a pilot funding program for blockchain and digital assets to provide funding for application projects with future application potential, iconic and market influence.In addition to funding, Cyberport will also assist these companies and coordinate with relevant stakeholders to support the implementation of the pilot projects as needed.
The Government Investment and Promotion Agency’s dedicated team welcomes and is ready to support digital asset service providers to set up and expand their business in Hong Kong.Among the many support available, InvestU can connect and facilitate business establishment for potential digital asset service providers with banks and different professional and support services.
Hong Kong Exchanges and Clearing House Co., Ltd. has developed the first batch of digital asset indexes in Hong Kong to provide investors with transparent and reliable Bitcoin and Ethereum price benchmarks in the Asian time zone to support Hong Kong’s development into Asia’s leading digital asset center.
To maintain market integrity and enhance trust in the digital asset system, the government will encourage the development of digital asset infrastructure, including but not limited to various regulatory technologies, cybersecurity and monitoring solutions with local experience and deep regional expertise.These tools will strengthen Hong Kong’s regulatory framework and capabilities and promote the safe and sustainable development of digital assets.The government will promote cooperation between technology providers, regulators and law enforcement agencies to optimize these solutions to ensure they meet the specific needs of Hong Kong’s digital asset ecosystem.
(“P”eople and partnership development) Talent and partner development
(g) Cooperate with market participants and universities to promote talent development
The government will continue to encourage training and talent development in the digital asset industry, focusing on blockchain applications, artificial intelligence integration and digital asset innovation, in order to cultivate local talents, attract global digital asset professionals to Hong Kong, and support the development of start-ups and financial institutions.The first talent list released in 2018 has been included in fintech professionals, including digital asset professionals from around the world.Next, Cyberport will use related measures for its Web3, blockchain and artificial intelligence technology training, assist the government in achieving this goal, thereby creating a stable professional talent reserve, continuously promoting innovation and contributing to the local digital asset industry.These measures include experience sharing and collaboration with global digital asset companies to provide the talent pool with state-of-the-art knowledge.
(h) Positioning Hong Kong as a center of excellence in knowledge sharing and promoting cooperation with other jurisdictions
The government will promote strategic cooperation between universities and the industry, connecting academic research with practical applications in the field of digital assets.The joint research program will focus on the development of new blockchain applications, tokenization frameworks, monitoring and artificial intelligence-driven financial tools, etc.By engaging students in digital asset projects, these collaborations will create a new generation of entrepreneurs, researchers and technologists to ensure the continuous flow of creativity and expertise.By combining academic achievements with industrial needs, we will build a sustainable talent pool for Hong Kong to support goals in digital asset development.
The government will strengthen cooperation between regulators and law enforcement agencies and coordinate the work of local regulators and law enforcement agencies to support the development of a transparent, secure and resilient digital asset market.The government will also support and participate in international cooperation with regulatory agencies, including establishing memorandums of understanding through relevant international organizations and with regulatory agencies and other government agencies in other jurisdictions to achieve information sharing and regulatory cooperation in the field of digital assets.The government will also ensure cooperation between departments through existing high-level internal mechanisms.
Summary: The future of integrating innovation, confidence and opportunity
“Policy Statement 2.0” represents Hong Kong’s determination to become a global leader in digital assets (“LEAP”).Through a unified regulatory framework, legal and regulatory review, regularization of tokenized government bond issuance, expansion of real-world assets and financial products tokenization, promoting stablecoin application scenarios, strengthening regulatory cooperation and promoting international cooperation, the government is laying the foundation for further innovation and market development.Combined with a booming ecosystem supported by training and project support, university-industry cooperation, and digital asset infrastructure, Hong Kong will create significant benefits for the global real economy and financial markets.With the joint efforts of regulators, industry and society, we will build a future that integrates innovation, confidence and opportunities, leading Hong Kong to a new realm of global digital assets.
Financial Affairs and Treasury Bureau
Hong Kong Special Administrative Region Government
June 26, 2025
